The commission issued a statement this afternoon in response to Microsoft’s decision. The reaction was mixed.

From CNET:

In a statement, regulators said that the move seems a step backward in the retail software arena, but said it could be more positive in the new PC market, which is how 95 percent of consumers get a new version of Windows.

“As for retail sales, which amount to less than 5 percent of total sales, the Commission had suggested to Microsoft that consumers be provided with a choice of Web browsers,” the Commission said. “Instead Microsoft has apparently decided to supply retail consumers with a version of Windows without a Web browser at all. Rather than more choice, Microsoft seems to have chosen to provide less.”

But, as for the new computer market, stripping out the browser might be a good thing, the Commission says.

“As for sales to computer manufacturers, Microsoft’s proposal may potentially be more positive,” the commission said. “It is noted that computer manufacturers would appear to be able to choose to install Internet Explorer – which Microsoft will supply free of charge – another browser or multiple browsers.”